Insured projects cannot be designed solely for student occupancy, although students and families are
eligible occupants of insured family housing projects. Insured loans on projects in college areas must be
underwritten at rents that are comparable to family housing in the area. Loans cannot be underwritten
with rental rates assuming multiple student occupants in a unit that would result in a processing rent
higher than a typical family apartment, nor may an appraisal use sales and capitalization rates generated
by comparable student housing properties.